Limited liability companies, or LLCs, are formed under state laws, which vary, but all basically require an operating agreement. This outlines ownership, allocation of profits or losses, fiscal and operating responsibilities of owners and management details. It might also include a provision for any changes or amendments. Not all states require formal filing of this agreement with a secretary of state or other agency, but most provide for voluntary recording. The Internal Revenue Service does not recognize an LLC as a tax entity, but requires notice of any change in the business name.

Review the existing agreement and check state laws for requirements to amend an LLC operating agreement. Prepare the amendment or a complete substitute agreement, specifying the changes. Document any changes in ownership or membership, revisions in management structure or allocation of profits and losses.

Clearly explain reasons for an amendment, such as changing the name to better reflect the nature of the business, additions of members to increase the LLC capital or deletions of members who left. Specify that the amended document supersedes any previous agreements.

Have the amended document signed by LLC owners, called members. Follow state laws; most states require at least two-thirds of the members to approve any change, but some require approval by all members. File a copy with the IRS if a name change is involved, following rules for notices depending on whether the LLC is a sole proprietorship, a partnership or a corporation for tax purposes.

File the amended agreement with the appropriate state agency, whether state law requires it or not. Take this step to help in dealing with banks or lenders, attorneys and accountants and potential investors or business partners.

About the Author

Bob Haring has been a news writer and editor for more than 50 years, mostly with the Associated Press and then as executive editor of the Tulsa, Okla. "World." Since retiring he has written freelance stories and a weekly computer security column. Haring holds a Bachelor of Journalism from the University of Missouri.